But this is standard bond portfolio risk. Is the public well informed and comfortable?They are not likely well informed, which is exactly why a TD fund is a welcome option compared to trying to build their own portfolio.Do they know what they are doing?No, see above.Can they trust their advisers?It is unlikely they have an advisor. That is the point behind a TD fund.If they get hurt with bond holdings will they be surprised?Possibly, but they are likely to experience less pain during bond bear market when they are appropriately allocated in a 2015 than if they owned 80% stock during a stock bear market. I could not tell you the number of people I know that held 100% (and in some times employer stock) all through 2008. GM employees, National City employees - they lost 100s of thousands of dollars. They would have been much better off in any mediocre TD fund.
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